Frankfurt is upping the stakes in the battle for post-Brexit banking jobs

A
plastic bull figurine, symbol of the Frankfurt stock exchange is
pictured in front of the German share price index DAX board at
the Frankfurt stock exchange January 22, 2015.REUTERS/Kai Pfaffenbach

LONDON — Germany's financial hub, Frankfurt, is trying to attract
its share of the Brexit-driven banker exodus from London by
appealing to "risk takers" working in the financial sector.

The city has laid out plans to loosen certain labour laws for
those financial services workers taking big risks with the
prospect of big rewards.

"It turns out that a solution which is tailored to the needs of
credit and financial services institutions clearly finds more
support than a general, income-related solution," Thomas Schäfer,
minister of finance in the State of Hessen
said in a statement, cited by the Financial Times.

"Banking regulation explicitly defines the risk bearers in such
institutions, which provides an ideal starting point. The
government of the State of Hessen anticipates that relevant legal
changes may be possible following the German parliamentary
elections this September, at the latest by autumn 2018."

That law, if it had been passed, would have meant high-earning
workers — like bankers — would not be entitled to as strong job
protections, making them both easier and cheaper to sack.

However, the city is now looking to impose those changes on those
engaged in more risky areas of business.

Employment law is thought to be a major sticking point for banks
looking to move operations to the continent after Britain exits
the EU, as the cost and time needed to fire employees is much
higher than in the UK. For example, firing a banker making €1.5
million overall would reportedly cost around €150,000 for a bank
operating in the UK, but would be almost the equivalent of their
total pay in Germany.

By proposing to relax those laws, Germany aims to attract more
business from major international banks and financial
institutions.

Currently, its official European HQ is in London. The move will
affect very few employees — the bank will transfer fewer than 100
staff from London, where it currently employs between 2,500 and
2,800 people.

On Monday, another Japanese lender, Sumitomo Mitsui Financial
Group, said it will make Frankfurt its EU base once Britain
leaves the bloc.